My wife and I just purchased a Tesla that is eligible for the tax credit. We take delivery in about 10 days. My question is, I’m taking money, a Loan, out of my 401k to use as a down payment. Right now I claim 2 on my federal taxes. I withhold 12% of my paycheck and that 12% goes strait into my 401k. The loan I will be taking out will take about $45 from my paycheck every week to pay for the loan over time. I want to take full advantage of the $7500 tax credit. My question is, I assume if I reduce the percentage from say 12% to 5% into my 401 k (federal) I will owe federal taxes next year. I assume the the $7500 ev credit will cover the amount owed, up $7500. Correct? This will in effect 1) give me a little more on my weekly pay check which will cover the money being taken out weekly for the loan and 2) should help me take full advantage of the $7500 tax credit. Am I correct on this or am I missing something? Thanks for your input…
